The US central bank did not change the interest rate. This is a problem for the bank.

The central bank did not change the rate. It stayed at 4.3%.

Jerome Powell said taxes make people and companies feel less good. But the economy is still okay. He said it is hard to know what to do now because things are not clear.

Powell said if taxes are high, prices might go up. The economy might grow slower. More people might not have jobs. He said this could be for a short time or a long time.

Usually, higher prices happen when people spend a lot, and companies make prices higher. More job loss happens when the economy is not strong. It is not common to have both higher prices and more job loss at the same time.

When there are not many jobs and prices are high, people call it 'stagflation'.

Some people think Trump's taxes on things from other countries can make prices higher and make people lose their jobs.

The Fed wants prices to be the same and help people find jobs.

People thought the Fed would lower interest rates because prices were not going up fast. But the Fed said no. The economy is good now.

Some months ago, many people thought the economy would get better. Prices would stop going up so fast, and people would still have jobs.

But on Wednesday, Powell said this will probably not happen.

If taxes are high, we will not reach our goals for about one year.

Powell said the Fed's next step depends on if prices go up a lot or if many people lose jobs.

He said we need to wait and see what happens before we decide.

An expert said the Fed might wait to cut interest rates because the economy is good.

Trump put more taxes on things from China in April.

This could cause problems between the bank and the government.

Powell said, "We don't listen to Trump. We only think about money and if things are safe."

If the Fed lowers interest, loans for houses, cars, and cards might be cheaper. But it is not sure.

A big problem for the Fed is how tariffs will change prices.

Now, the U.S. economy is mostly good. Prices are not rising as fast as in 2022. People are buying things. Businesses are hiring workers, and many people have jobs.

But prices may go up more soon.